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Doing Business In China Case Study

Decent Essays
GSK Continues to Operate
Since the ordeal in China GSK currently has continued to keep operations going, the $40.6 million was a big hit on their financials but their stock prices maintain a $40 average. GSK clearly continues to grow and are currently doing well after all the scandals that accrued in 2013 – 2014. They have been recently approved by the U.S. Food and Drug Administration (FDA) on their new drug. GSK continues to grow and have two more drugs in the works. Britain’s National Institute for Health and Care Excellence (NICE) has also approved one of their drugs Strimvelis, which has a price tag of $690K USD. This shows that the company is making process in both these companies even after their significant loss due to their
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“Employees in the local market are stuck balancing between meeting the cultural expectations of the company versus that of the country’s culture.” (Jaeger, 2014). This can have an after effect that the business cannot afford. Each member of the business no matter country of origin must understand that cultural norms do not replace laws. Since China is cracking down on antitrust violations, which seems to have a focal point towards multinational businesses it is vital that a business understands that there is a cultural norm of “greasing the wheels” or in better sense using bribery and kickbacks to get things moving in a timely manner. A pharmaceutical business understands that you do not always have to have the best drug on the market if you are the first and only one that is on the market.
Lessons-Learned
For multinational businesses to be successful they must continue to grow and make drastic moves to find new markets where there is a need and want for their products. For any business that wants to conduct themselves in a new environment they must understand the cultural norms but must also understand the nuances of local and federal laws that govern the operations of businesses in that country. The same effort must be made to understanding the host countries laws while conducting business in an external nation and international laws and mandates. All these aspects are part of
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